India’s spirits market is entering a new phase of growth, led by a decisive shift toward premium and high-value products, with companies like Radico Khaitan sharpening their focus on consumers willing to trade up. Industry executives say rising aspirations, expanding disposable incomes and changing consumption habits beyond metro cities are reshaping demand patterns across the country.
Radico Khaitan, which owns brands such as 8PM whisky, Rampur Indian Single Malt, Magic Moments vodka and Jaisalmer gin, is increasingly concentrating on the prestige and above category, a segment that already accounts for a significant share of its revenues by value. According to the company, this premium portfolio now contributes close to two thirds of overall sales, underlining how higher priced products are becoming central to growth strategies in the spirits sector.
Management believes the strongest momentum is emerging from tier two cities, where younger consumers are showing greater willingness to experiment with global styles, craft offerings and better quality spirits. This trend is not limited to urban elites. Improved retail access, wider brand awareness and aspirational lifestyles are steadily pushing premium consumption deeper into smaller markets.
Radico Khaitan expects its prestige and above portfolio to grow at a healthy pace over the next few years, driven by both volume expansion and improved pricing. The company has also identified the super premium category as a key profit driver, an area where it had limited presence earlier but now sees substantial headroom for expansion. New launches and brand building investments are aimed at capturing a larger share of this high margin segment.
Industry analysts note that premiumisation is becoming one of the most reliable growth levers in India’s otherwise tightly regulated alcohol market. While overall volume growth remains moderate, value growth is accelerating as consumers shift to more expensive brands. For companies with strong portfolios and distribution reach, this shift offers an opportunity to improve margins and generate operating leverage as scale increases.
With consumer demand expected to remain resilient and aspirations continuing to rise, premium spirits are likely to play a defining role in shaping the next phase of India’s alcohol industry.
